What Do Calm Markets Portend?

Low volatility makes some investors fearful that stocks might be getting ready to decline, but there are reasons to doubt that.

To parents of small children, the only thing worse than too much noise is sudden silence. Thankfully, the stock market, while temperamental, is not a child. A quiet market might provoke a sense of unease, but it doesn't have to signal tough times ahead.

Despite a string of what should have been market-moving events last week, the Standard & Poor's 500 index has insisted on moving in baby steps. The index finished up no more than 0.65% on any single day, while the CBOE Volatility Index, or VIX, closed below 11 for the...